Moving from Texas to Alabama

[jtfree]

I worked half the year in Texas (a non state income state) and then moved to Alabama.  How do I avoid Alabama trying to tax me on the income that I earned in Texas? Do I only report the gross income that I earned while in Alabama and the associated taxes paid in Alabama?

[JotikaT2 · Accepted solution]

There are a couple of things you will need to do in TurboTax to ensure you are only taxed on your income while a resident of Alabama.

In the "My Info" section of TurboTax, confirm that you have entered the correct state information:

1. Click "Edit" to the right of your name
2. Confirm your input under #2 "Tell us the state(s) you lived in"
3. Confirm the rest of the state-specific questions here as well including the "previous state of residence" and "date you became a resident" of the state noted
4. Do the same for your spouse if you are married filing jointly.
5. Go back to the personal information section, and verify the mailing address and "Other state income" section.

Review your input on your W-2 Wages under the "Income & Expenses" section.

Confirm that you have entered the correct state for each W-2 in Boxes 14-15.

After you have confirmed the above items and completed your Federal return, go ahead and start your Alabama return.

1. Select Alabama.
2. Answer all the questions as prompted.  You will see the following screens.

The next screen will go into further details as shown in the next sample:

Carefully enter your information as prompted to ensure you only enter the information requested.  

This will help you ensure you are only taxed on the income while you were an Alabama resident.